America Movil and Entel terminated a non-binding agreement signed earlier this year which could have seen the pair make a joint offer for Telefonica assets in Chile, with the parties now mulling individual bids.

In a stock market statement, America Movil revealed the agreement with Entel had been scrapped and it would “explore its potential participation” in a sales process initiated by Telefonica alone.

Bloomberg reported Entel is also set to consider going it alone on a bid.

The suitors entered the initial pact in July.

In a statement released in October, America Movil noted the rationale behind “jointly exploring their potential offer is based on the potential benefits that the transaction could generate for its clients and Chilean consumers”.

It added the move could “strengthen the telecommunications sector competitiveness, increasing the ability to continue investing and competing in high-speed networks and coverage, through a more efficient use of the involved assets, all of which is key to the country’s digitalisation”.

In a stock market statement issued in October, Telefonica Chile announced it had been informed by its parent company there was a “strategic evaluation process” of the business underway which could lead to its sale.

At the time, it added there had been “several non-binding expressions of interest” and a due diligence process was “underway with several potential buyers”.

A divestment in Chile would be the latest disposal of a Telefonica’s asset in Latin America, as it continues to sharpen its focus on priority markets.